Modifications etc. (not altering text)
C1Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
(1)This section applies if in any accounting period a derivative contract of a company has an unallowable purpose.
(2)The company may not bring into account for that period for the purposes of this Part so much of any exchange credit in respect of that contract as is referable to the unallowable purpose on a just and reasonable apportionment.
(3)The company may not bring into account for that period for the purposes of this Part so much of any debit in respect of that contract as is referable to the unallowable purpose on a just and reasonable apportionment.
(4)Subsections (2) and (3) are subject to section 692 (allowance of accumulated net losses).
(5)An amount which would be brought into account in accordance with this Part as respects any matter apart from this section and section 692—
(a)is treated for the purposes of section 699(1) (priority of this Part for corporation tax purposes) as if it were so brought into account, and
(b)accordingly may not be brought into account for any other corporation tax purposes as respects that matter.
(6)For the purposes of this section and section 692, a credit is an exchange credit, in the case of any company, so far as it is attributable to any exchange gains arising to the company which are included in the reference to profits of the company in section 595(3) (see section 606 (exchange gains and losses from derivative contracts)).
(7)For the meaning of “has an unallowable purpose” and “the unallowable purpose” in this section and section 692, see section 691.
Modifications etc. (not altering text)
C2S. 690 excluded by 2010 c. 4, s. 938N (as inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 2)